Despite the challenges in bakery industry, it remains a major segment in India's processed food category. The industry offers a lot of growth and business opportunities. The baking industry in India is experiencing robust growth of over 9% and was calculated to be USD 7.22 billion in 2018. And it has been growing steeply year after year.
But, the changing customer habits and lifestyles are making traditional bakeries obsolete and giving large growth to home bakers. While we enjoy baked goodies, we also seek healthier options. The consumption of bakery items is high in every household. Just look at the number of times you eat biscuits, cookies, etc. in your day-to-day life. And that’s when the consumer turns towards a home baker.
Also, the baked items taste best when they are fresh. Large commercial bakeries do not have the possibility of baking fresh for each customer. Customers today look for guilt-free, gluten-free, vegan, multigrain, diabetic-friendly, etc. Variety when it comes to baked goods creates many challenges in bakery Industry. Home bakers have an edge here. Baking can be made healthier and the customer is happy to pay a premium for the same.
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Challenges in Bakery Industry
Challenges in the bakery industry: Not every home baker starts after completing a 3-year degree in food. Most home bakers get into home baking because of sheer passion. The industry of home baking is mostly driven by passion into business than otherwise.
Limited business knowledge leaves many home bakers unaware of the challenges they face. Even if home bakers like to acquire knowledge, there is hardly a platform for them. As we are considering they are all working and cannot go into a full-time course.
One of the biggest challenges most home bakers find is the process of finding paying customers for their bakes. Most Home bakers struggle in finding the right type of customer. They hate talking to customers who do not understand their niche and only end up negotiating prices.
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Why do Home bakers struggle in finding paying customers?
We ran a campaign and in a duration of 2 years, we spoke with more than 2000 home bakers across India. We found something interesting.
Most of the home baking businesses got started because friends and family appreciated the baking abilities of the individual. It encouraged the individual to start healthy baking classes. This is great to start with.
Due to a lack of business, marketing, and brand positioning knowledge, issues arise. The business always stayed within the reach of friends and family.
Like any business, even a small home baking venture requires a robust business plan, marketing strategy, brand positioning, and comprehensive baking expertise.
The clutter in the environment
Amidst the clutter, it has challenges in bakery industry for an aspiring home baker to find the right source of knowledge and information. Institutes demanding high costs and full-time commitments hinder accessibility for many. Not everyone has that ability and flexibility.
Other reliable sources are too scattered and it's super expensive if one has to learn all. Else you put your fate on learning from unreliable sources.
ABCB offers a solution: a program to help aspiring home bakers launch their businesses.
We covered everything from marketing to brand building, from setting up the home baking business. Every type of baking that a home baker should know will keep them in business.
Home bakers praised the program's layout, embracing a unified platform. Where they could learn home baking courses and everything that they need to start a successful and sustainable home-baking business too. If you're into both home baking and blogging for earnings, our comprehensive guide covers how food bloggers can earn their blogging
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